* Platinum hits over two-month highs
* Dollar index slides to 5-week low
* Fed's Yellen to host webcast meeting on Thursday
(Updates prices; adds comment, second byline, NEW YORK
By Marcy Nicholson and Eric Onstad
NEW YORK/LONDON, Jan 12 Gold surged above $1,200
an ounce to its highest in seven weeks on Thursday as the dollar
fell after U.S. President-elect Donald Trump's long-awaited news
conference gave few details on economic policy.
But analysts warned that gold's revival since mid-December
may be running out of steam as the dollar was likely to rebound
once Trump moves ahead with his economic plans.
Spot gold was up 0.5 percent at $1,197.64 an ounce by
2:35 p.m. EST (1935 GMT), after touching $1,206.98, its loftiest
since Nov. 23. U.S. gold futures settled up 0.3 percent
at $1,199.80 per ounce.
Trump delivered a wide-ranging briefing on Wednesday that
lasted longer than expected but contained no details on tax cuts
and infrastructure spending, analysts said.
That sent the dollar index sliding to the lowest in
nearly five weeks.
"It's a mess frankly, which is a reflection of the fact that
there's no clarity on U.S. economic policy," said Tom Kendall,
head of precious metals strategy at ICBC Standard Bank.
"For the time being, I'm sticking to my thesis that this
move can go a bit further, but we're running out of steam."
Gold is up around 7 percent since hitting a 10-1/2-month low
on Dec. 15.
"Despite moving back to $1,200 per ounce, we see no lasting
recovery for gold," said Carsten Menke, commodities research
analyst at Julius Baer in Switzerland.
"The market lacked support from physical buying ... which we
believe is a precondition for a lasting recovery."
The outlook for U.S. rates may become a little clearer when
Federal Reserve Chair Janet Yellen appears at a webcast town
hall meeting with educators on Thursday.
"Trump's election has introduced a proliferation of
unknowns, which the market will have to work through as they
surface," RBC Capital Markets said in a note.
"Overall, while we are cautiously optimistic on gold for the
year, we still think the real reason to buy gold is as a risk
overlay - a hedge against moves like these."
Spot silver was up 0.4 percent at $16.79 an ounce
after hitting a four-week high of $16.98.
Platinum climbed 0.6 percent to $978.30, after
touching a high of $990.10, its strongest since Nov. 10.
Palladium added 0.5 percent at $758.
Commerzbank said Chinese car sales were not likely to match
their 2016 record-high gain of 15 percent.
"The sales dynamism is expected to decline significantly in
2017 ... platinum group metals, and particularly palladium, are
therefore likely to be not quite as well supported this year," a
(Additional reporting by Nallur Sethuraman in Bengaluru;
Editing by Dale Hudson and Andrew Hay)